10/27/10
Good afternoon.
A very sad and disturbing fact finally became obvious to me today. The final piece of the puzzle is a comment attributed to a respected MID director, in today’s Modesto BEE. That Director justified another huge MID rate increase by saying, “I just think it would be fiscally irresponsible because what it’s going to do is kick the can down the road.”
Would someone explain to me why victimizing every household and business in Modesto with higher energy costs is fiscally responsible??
Why is there no other solution, like, maybe reducing overhead? W
hen every one of us, and every business is cutting salaries and all other expenses, MID should NOT be considering increasing rates.That comment made me think very hard about what is going on at MID.
You already know that 6 months ago I said that something sinister is going on at MID. Well, consider what is said in today’s article, and what has been said in previous news stories and at MID meetings.
First, let us consider the remarkably silly argument that these massive rate increases just do not mean much actual money. MID tells us that the average residential monthly bill is $139.55. This ridiculous minimalizing of the facts is tawdry.
Who of you thinks your average bill is $140 monthly?? That would mean that your $250 to $400 dollar summer billing would have to be balanced by a $45 to $65 winter bill. Have you EVER had an MID bill as low as $65?? Of course not.
My MID bill for Aug 11 thru Sept 11 of this year was $225.66 The current bill sitting on my desk is for $181.86.
The August bill was $274.91 Remember that 2010 has beenThe
July bill was $251.86 a very cool year. ave Have
The June bill was $136.48
The May bill was $141.37 Moreover, in my home, we are
The April bill was $122.05 very aware of electricity use,
The March bill was $117.11 use air conditioning only when
The February bill was $113.02 necessary.
The January bill was $169.81The 9 month total is $1,734.13
The average for this period is $192.68
Thus, MID underestimates my two person, two cat household electricity expense by 40%. If every MID estimate is 40% under the real cost, you can see that the train is heading for a catastrophic wreck.Second, the last rate increase of 7% plus the 9% being proposed mean an actual 118% increase in the last 6 months.
On an annual basis, that is 136%.
In contrast, PG&E REDUCED its rates by 3% in June of this year, and “No increase is planned for the new year.” The last rate increase by TID was in Feb of 2009. (This is reported in today’s BEE, page B-3.)
Third, MID has told us that in order to “aggressively pursue green energy”, it will have to increase rates by huge amounts. That is, they will spend $4 Million on green energy this year, but in 3 years the green energy cost will increase to $43 Million dollars.
Fourth, MID estimates of the rates for “small commercial” appear to be radically low. What about the cost of electricity paid by hospitals, schools, churches, government buildings, wineries, glass plants, refrigerated warehouses, and other high energy using facilities. Those rates will assuredly cripple these entities budgets, and force many smaller businesses to close. What about the ice cream store, your local food market? Is it any wonder that food costs are increasing rapidly?
Certainly, radically higher electricity costs will destroy our economy. Enormous energy costs force every one to suffer. MID will be partly responsible for this disaster.
Fifth, I have already sent a message to you proving that the “average residential user” would pay less if their electricity were provided by PG&E.
How is that possible? PG&E must make a profit, must serve remote areas, must pay dividends and is regulated by PUC, SEC, and the share holders. MID can not make a profit, never pays dividends, has no regulatory expense and no share holders.
Sixth, MID has proven that it is failing.
The Mountain Home fiasco is a serious failure.
The new water treatment plant does not work, another failure.
MID pays for “routine maintenance” with borrowed money, doubling your costs, and proves that they have failed to plan for routine maintenance.
Seventh, MID claims that they must “Improve our bond rating ...”, by raising rates.
What is wrong with that comment? How on earth can public entity raise rates to justify more borrowing??
JUST STOP BORROWING AND LIVE WITHIN YOUR RESOURCES!!!
Eighth, MID has in the past, been considered a respected and very well run utility, and it helped Modesto to enjoy a low cost of living. Today, it is generally considered to be very poorly managed, an adversary to the rate payer and an impediment to the economy.
I firmly believe that current MID management must change their policies to conform to the needs of our economically challenged community, or, the community must find better managers.
Thank you very much,
Dave
